3Com Furthers Business Strategy; Company Expands Outsourcing Program and Realigns R&D Capabilities as Next Steps to Improve Efficiency.Business Editors MARLBOROUGH, Mass.--(BUSINESS WIRE)--Sept. 10, 2003 3Com Corporation (Nasdaq:COMS COMS 3Com Corporation (stock symbol) COMS Certified Orientation and Mobility Specialist COMS Continuous Opacity Monitoring Systems COMS City of Manchester Stadium (UK) ) today announced that it plans to outsource all of its manufacturing and realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. its product development and supply chain capabilities as part of its ongoing efforts to further improve efficiency and reduce cost. "These actions further enhance 3Com's ability to bring competitive and comprehensive networking solutions to the enterprise market," said Bruce Claflin, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , 3Com Corporation. Over the next six months, 3Com will complete the outsourcing of all of its direct manufacturing See rapid manufacturing. , distribution and related activities for its enterprise networking products between two partners, Flextronics, Singapore (NasdaqNM:FLEX) and Jabil Circuit, St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. . Flextronics will also assume responsibility for 3Com's global distribution from its regional hubs. 3Com also announced it has established a Taiwan Design Center (TDC TDC Top Dead Center TDC Time-to-Digital Converter TDC Tabular Data Control TDC Total Development Cost TDC Texas Department of Corrections TDC The Discovery Channel TDC Torpedo Data Computer TDC Theater Deployable Communications ) which will be responsible for the continued design and manufacture of low-end, standardized volume products and will be staffed by 3Com employees and Original Design Manufacturer (ODM (Original Design Manufacturer) A contract manufacturer that uses its own designs and intellectual property (IP). See contract manufacturer. ) partner employees. The company expects the TDC to be operational in its fiscal Q2, ending in November 2003, and fully staffed by the end of its fiscal Q4, ending in May 2004. "We will focus 3Com's internal engineering on high value-add innovation such as VoIP, ASICs, XRN XRN - A newsreader program for Usenet news running under the X Window System. (TM) architecture and security, while leveraging partners around the world to complement our internal resources," said Claflin. "Today's announcement is a continuation of 3Com's corporate strategy to offer a broad range of innovative products and solutions, competitively priced to meet the needs of the enterprise customer." Today's actions will result in a global reduction in force affecting manufacturing, product development and supply chain operations, including the closure of 3Com's Dublin, Ireland manufacturing facility, which is expected to occur by the end of February 2004. Approximately 1,000 3Com employees are affected globally; however, the majority is associated with the company's manufacturing and supply chain operations. Notifications begin today and are subject to appropriate legal and consultation processes in the respective countries in which they occur. About 3Com Corporation 3Com is a tier-one provider of innovative, practical and high-value voice and data networking products, services and solutions for enterprises of all sizes and public sector organizations. For further information, please visit www.3com.com, or the press site www.3com.com/pressbox. 3Com and the 3Com logo are registered trademarks of 3Com Corporation. XRN is a trademark of 3Com Corporation. All other company and product names may be trademarks of their respective holders. |
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